Is ON Semiconductor Corp. overvalued or undervalued?

As of 5 May 2025, ON Semiconductor Corp. has moved from an attractive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 23, while the EV to EBITDA ratio is 14.88, and the ROCE is reported at 16.05%.
In comparison to its peers, ON Semiconductor Corp. has a lower P/E ratio than Broadcom Inc. at 81.42 and Advanced Micro Devices, Inc. at 88.68, but is slightly above NXP Semiconductors NV, which has a P/E of 23.71. Additionally, the company’s EV to EBITDA ratio is more favorable than that of Broadcom and AMD, indicating a relatively better valuation in terms of earnings before interest, taxes, depreciation, and amortization. Recent stock performance shows a decline of 22.40% over the past year, contrasting with a 10.26% increase in the S&P 500, reinforcing the notion that the stock may be fairly valued in the current market context.